Coca-Cola plans to test market Sprite Zero now

File PhotoBuoyed by the success of its sugar-free fizzy drink Coke Zero, US beverage maker Coca-Cola is planning to test market Sprite Zero here, the zero-calorie option of one of the world's largest selling lemon-lime drink. Sprite is India's biggest soft drink brand by volume sales -a position it occupied last year by overtaking Thums Up, which is also a Coca-Cola brand.

On the impending launch of Sprite Zero in India, a Coca-Cola spokesperson said: "We keep evaluating various beverage options that best meet consumer needs. However, at this point, we are not in a position to comment on a specific beverage or our plans around it."

The diet soft-drinks market in India has remained a niche category. It is estimated to be around Rs 300 crore (having tripled from its size of around Rs 120 crore in 2010) compared to the Rs 14,000-crore domestic soft-drinks mar ket. However, Coke Zero's launch last year seems to have boosted the category, which has grown by around 39% since then, compared to a CAGR of 12-13% between 2010 and 2014, according to industry experts, who quoted data from research firm Nielsen. "Coke Zero has become a Rs 40-crore brand within around 10 months of its launch," said an industry expert.

Debabrata Mukherjee, VP , marketing & commercial, Coca-Cola India and South West Asia said: "We have been surprised by the strong consumer traction and high rates of conversion, from trials to repurchase of Coca-Cola Zero. What is important is that it is perhaps showing the way for a lot of consumer brands in the diet and light foods category -a category that has not met with a lot of success in the Indian market."

The diet category in India has proven to be tricky for most companies to crack. For instance, Coca-Cola's rival PepsiCo launched its baked snack brand Aliva with much fanfare in 2012 only to pull it off the shelves due to lack of consumer interest. "The diet category still has a long way to go in India. While snacking, Indians still prefer to indulge," said Arvind Singhal, retail expert and founder of Technopak.

Sprite Zero has the same sweeteners as in Coca-Cola Zero -Aspartame and Acesulfame - and was originally known as Sugar Free Sprite when it was first created in 1974. At present, Coca-Cola sells two diet beverages in India, Diet Coke and Coke Zero. In the test-marketing phase, Sprite Zero is expected to be sold only in 300 ml cans, which is a preferred pack for the company for its diet products. The company is likely to test market it in South Indian cities, where Hindustan Coca-Cola, its bottling arm, has a robust distribution network.